You can create an NPS (national Pension System) payable ledger to account for pension payment to retired employees.
To create the NPS Payable Ledger
1. Go to Gateway of Tally > Payroll Info. > Pay Heads > Create.
2. Enter the name of the ledger in the Name field.
3. Set the Pay head type as Not Applicable, from the list of Pay Head Types.
4. Set the ledger as under Current Liabilities from the List of Groups.
5. Press Enter to save.